EU producers oppose any concessions to Brazil on sugar and ethanol as part of the EU-Mercosur negotiations, the International Confederation of European Beet Growers (CIBE) said Monday.
Brazil currently benefits from the EU's trade concessions on sugar, which allow imports at a reduced duty. "From October 2017, Brazil's preferential access to the EU market will rise to over 0.7 million mt/year, representing 52% of the EU's total WTO quota for sugar," CIBE said in a statement.
The Brazilian sugar and ethanol sector is now requesting additional access to the respective EU markets in the EU-Mercosur negotiations.
European producers argue this would not create a level playing field, as Brazil is one of the largest producers and exporters of sugar and ethanol and is supported by the government.
EU sugar producers are concerned that with the end of production quotas approaching, they will already be facing considerable pressure on their margins, while domestically produced volumes should be sufficient to cover the EU's needs.
Similarly, ethanol producers are against any concessions especially as the sector faces policy uncertainty given the Commission's intention to phase out crop-based biofuels.
